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Search for Yield Leads Bond Buyers to Unrated Debt


Record low interest rates on riskier corporate bonds are prompting money managers to look far afield in a bid to boost returns.

Faced with yields once reserved for the safest types of government debt, some managers of speculative-grade bond funds are piling into debt with rock-bottom credit ratings. Others are buying smaller, more obscure securities that carry higher yields because they can be hard to sell.

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